Location: Marion County, TX | Metro: Cass County, TX
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate picture for ZIP code 75555 reveals significant differences between using the Fair Market Rent (FMR) and the market rent figures. Using the annualized 2BR FMR of $970 (for FY 2026), the potential annual rental income for a property would be $11,640. Given the median home value of $183,044, this translates to an implied gross yield of approximately 6.36%. This calculation is based on the assumption that the property can be rented out at the FMR rate.
In contrast, when considering the market rent figure of $740, the annual rental income drops to $8,880. With the same median home value of $183,044, this yields an implied gross yield of about 4.85%. The lower gross yield reflects the reality of market conditions, where rents may not always reach the FMR level.
Evaluating these scenarios against the ZIP code's 15.8% renter density and the unavailability of days on market (DOM) data, the market rent scenario appears more realistic. A lower renter density suggests that competition among renters is less intense, potentially making it difficult to achieve the higher FMR rates consistently. Additionally, the absence of DOM data could indicate that rental properties are not turning over frequently enough to justify the assumption of constant high rental rates.
While the FMR-based gross yield of 6.36% might seem attractive, it is important to consider the actual market dynamics. The 4.85% gross yield derived from the market rent is likely a more accurate representation of what landlords and small-portfolio investors should expect in ZIP 75555. This lower yield aligns better with the observed renter density and the general trend towards market-driven rental rates.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.